J&A_Redacted_-_SPE7LX-18-R-X073.pdf

Justification & Approval For Other Than Full and Open Competition Solicitation SPE7LX-18-R-X073

[X] Original

1. The Defense Logistics Agency, (DLA) Land & Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on an Other Than Full and Open Competition basis.

3. The supplies required to meet the using activity’s needs are described below and in the Technical Data Spreadsheet, per attachment #1.

National Stock Number (NSN)

Item Nomenclature

Annual Demand Quantity (ADQ)

Acquisition Method Code (AMC)

Acquisition Method Suffix Code (AMSC)

2530-01-395-8774 Arm, Control, Vehicul 1,675 3 D

Recommended 1-Yr Annual Value

Recommended 3-Yr Base Value

Recommended 5-Yr Contract Total

Contract Maximum

Contract Minimum

Project CL17236003 is for the acquisition of National Stock Number (NSN) 2530-01-395-8774 which is currently on the Fleet Automotive Support Initiative (FASI) Global Long-Term Contract (LTC), SPE7M-11-8-D-0002 with Lockheed Martin, Commercial and Government Entity (CAGE), 02769 set to expire 10 September 2018. The signed Justification & Approval For Other Than Full and Open Competition for the FASI contract is listed as attachment #2.

The proposed solicitation will be used to establish a Fixed-Price Indefinite Delivery Contract (IDC) with a three (3)-year base period and two (2), one (1)-year option periods, with an estimated base period value of , an estimated five (5)-year total of and a contract maximum of This item is associated with multiple weapons systems with the Highest Priority Weapon System Code being, 39A and per Mechanical Engineer research this NSN belongs to the Patriot Missile, Rocket Launcher and Family of Medium Tactical Vehicles (FMTV) as well as several Mine-Resistant Ambush Protected (MRAP) variants. A sampling of the SuperKID item along with the Weapon System end-items are shown below.

4. The statutory authority permitting Other Than Full and Open Competition is:

(X) 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. If restricted to the only source of supply, include source and Commercial and Government Entity (CAGE) code:

NSN

Item Nomenclature

Original Equipment Manufacturer

Commercial and Government Entity

Approved Part Number

2530-01-395-8774 Arm, Control, Vehicul ZF Gainesville, LLC 6FL99 00001-3019

The use of the authority cited above:

(X) Acquisition Method Code (AMC) 3 - Acquire, for the second or subsequent time, directly from the manufacturer.

(X) Acquisition Method Suffix Code (AMSC) D - The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

The Mechanical Engineer has confirmed that ZF Gainesville, LLC is the only known source with the data necessary to manufacture the item.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

(X) The acquisition will be synopsized on or about 15 May 2018.

(X) The solicitation will be posted and available on the DLA Internet Bid Board System.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

This acquisition will include a three (3)-year base period and two (2), one (1)-year option periods. Quantity ranges will be included to allow offerors the opportunity to provide quantity price breaks and a price analysis will be performed to compare proposed unit prices to those of previously awarded acquisitions as well as the prices paid in the commercial marketplace. Certified Cost and Pricing Data will not be required; however, additional pricing support data, such as commercial sales invoices, may be required if determined necessary as an award will only be made if prices are able to be determined fair and reasonable.

8. Market Research & Efforts to Obtain Competition Market Survey:

In accordance with 10 U.S.C. 2304(f)(3)(D) a market survey questionnaire and item detail spreadsheet was emailed to the six (6) vendors below sent from the Sourcing Strategy Branch (SAPD-ZAA) 10 September 2017 with follow-up emails sent 6 January 2018 and 13 February 2018. As no adequate survey results were received the Buyer followed up once the project was transferred 22 March 2018.

BAE Systems Land & Armaments, L.P., 076M6 BAE Systems Tactical Vehicle, 0FW39 Lockheed Martin, 02769 Kampi Components, Co, 7Z016 Washington Foundries, 1PWB6 ZF Gainesville, LLC, 6FL99

Sources Sought Notice:

In accordance with Procedures, Guidance and Information (PGI) 206.302-1, to identify potential sources of supply for this item a Sources Sought Notice was posted to the Federal Business Opportunities website 12 March 2018 to which no responses were received back.

Techniques Utilized to Conduct Survey:

Market surveys were conducted via email and telephone.

Types of Information Requested:

The market survey requested the vendor to provide information including business type, business size, interest in an IDC and length of contract, commerciality of the item and supporting documentation, approximate price and delivery, inspection and packaging compliance, foreign or domestically manufactured, and ability to provide Certified Cost & Price Data.

Market Research Summary:

The sole reply to the original market survey was received from BAE Systems Tactical Vehicle on behalf of BAE Systems Land & Armaments, L.P, stating, “Item NIIN 01-395-8774 is most likely not a part we would bid on if a new opportunity is released.” From this reply the Buyer requested a supplemental Product Specialist review concerning the Original Equipment Manufacturers originally listed within the Procurement Item Description. This review concluded with an Electronic Cataloging submission to have both of the BAE CAGEs, 0FW39 and 076M6 removed from the Total Item Record as approved sources.

From this new change the Buyer called the now sole approved source of this item, ZF Gainesville, LLC, (6FL99) and spoke with John Eagle 22 March 2018 about the multiple requests previously sent to him to which he stated he has not had a chance to look at them. The Buyer ensured his email address on file was correct and survey was resent but as of 20 April 2018, no reply has been received. The Buyer researched previous procurements for this item and sent additional market surveys to the previous awardee Washington Foundries, Inc., and to Kampi Components a vendor who has previously quoted on this item.

Per the market survey replies, both companies are small business dealers that are interested in pursuing an Indefinite Delivery Contract (IDC) for this item and both listed ZF Gainesville as the manufacturer of this item.

Information received regarding the commerciality of the item(s):

Kampi Components identified this NSN as not a commercial item as defined in FAR 2.101(b) and stated that it is not available in Published Catalogs while Washington Foundries did not address any of the questions concerning commerciality. However, per the Buyers analysis of the technical coding of this item it does not appear to not require product testing lots nor any other special requirements with regards to a “military uniqueness”, and research completed within the IHS Haystack database stipulates that this NSN has an end item of, NSN 2320-01-354-3386, Cargo Truck.

The Buyer requested supplemental support to help determine item commerciality and received the following reply from the DLA Land & Maritime (L&M) Engineering Support Team 22 March 2018:

“Per the weapon systems coding, this part goes on these vehicles….Patriot Missile, Rocket Launcher and Family of Medium Tactical Vehicles (FMTV). Additionally per some attached documents in our system it appears also go on several MRAP variants. While these are military vehicles and I agree with Jeff that there could be some unique requirements. However, per our contract history and recent discussions with BAE the 3/2 source is a commercial suspension parts company. We have been purchasing parts from them for at least 10 years via the FASI-G program and have not had any issues with these parts. Thus in this case these vehicles must have been designed to utilize a commercial control arm…probably a similar control arm used in commercial construction equipment.”

It is to be noted that BAE was considered an approved source at the time of this correspondence and despite no longer being an approved source, it does not negate the abovementioned information concerning item commerciality.

Furthermore, per the reply received from the Product Specialist within the Strategic Acquisition Procurement Directorate (SAPD) 30 March 2018, this NIIN is proprietary to ZF Gainesville, CAGE 6FL99 and could be considered commercial of a type but was unable to find the part number on the ZF website.

To sufficiently substantiate the commerciality “of a type”, additional supporting information was requested from the Mechanical Engineer 9 May 2018 who replied 14 May 2018 confirming that ZF Gainesville, LLC is the only known source with the data necessary to manufacture the item, and that the commercial variant of this truck used by the public was produced by Steyr, which through a series of mergers is now a part of MAN Truck & Bus. While the Mechanical Engineer was unable to find a commercial item variant offered in the U. S. it was acknowledged that “control, arms” are used in the front suspension of all trucks. It was acknowledged by the Mechanical Engineer that “control, arms” are used in the front suspension of all trucks. Despite the shortage in technical data for this specific item, a Control Arms Report was provided to the Buyer per attachment #3 which is a report of parts with the same item nomenclature and helps validate these parts’ latitude. The Mechanical Engineer stated this report shows the weapon systems that use them and that the use of similar items are on virtually every commercial vehicle which indicate the commercial “of a type”.

To supplement the above “of a type” data the Buyer contacted the OEM via phone and email and received the following replies 21 May 2018: ZF Gainesville confirmed that part number 00001-3019 is not offered to the general public, but stated the similar part number P0023-3032 is sold commercially and is a part used in the vocational application of Mack Trucks to include construction and refuse hauling. The OEM confirmed that the minor modifications made to meet Federal requirements “of a type” is the required Chemical Agent Resistant Coating (CARC) paint and the skid plates utilized for the special protection of seals when transporting vehicles. The OEM provided a drawing of the Mack 17QF443 torque rod family for part number 17QF443P205 which was able to be verified online via the commercial market per attachment #4.

In addition to the technical support and OEM replies received, the Buyer researched the approved part number for ZF Gainesville and determined that it could be ordered online https://aerobasegroup.com/part-number/000013019_01- 395-8774 per attachment #5. The AeroBase Group is a major supplier of parts and consumables for not only the military but also of the private aircraft, truck, and marine industries in approximately 100 countries and also carries aftermarket, OEM, and Government Excess Surplus, as well as FAA approved commercial parts. The AeroBase Group lists historical pricing ranging from $221.13/unit - $342.75/unit but depending on quantity, availability, condition, lead time, and possible discontinuation of an item, are unable to guarantee pricing until an updated quote is provided.

In light of the abovementioned facts, this NSN is determined to be commercial of a type in accordance with FAR 10.002(b) and FAR 2.101 - Commercial item - (3)(ii), Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements.

9. Additional facts supporting Other than Full and Open Competition are:

(X) Based upon the technical certification on file in DLA Land and Maritime - VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government. Furthermore, a technical and quality review was initiated by the SAPD Strategic Souring Specialist during the project development stage for this acquisition which the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Kampi Components, Co, 7Z016 Washington Foundries, 1PWB6

11. This item is subject to the following methods of locating additional sources:

(X) Other: A Sources Sought Notice was posted to the Federal Business Opportunities website 12 March 2018 through 16 March 2018 to with no responses received back.

(X) Other: Other: Solicitation will be synopsized on the Federal Business Opportunities website and will be available on the DLA Internet Bid Board System on or about 12 June 2018.

(X) The solicitation contains the following Procurement Note provisions: L04 - Offers for Part Numbered Items, and M06 - Evaluation of Offers for Part Numbered Items

Contracting Officer Certification I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

HEIDI TREADWAY

Contracting Officer & Date of Approval

HEIDI TREADWAY

05 June 2018

Competition Advocate Approval / Certification I have reviewed and approve this justification. The estimated total value of this J&A is :

MARY COUTURE

Competition Advocate & Date of Approval Approval Requirements

(X) $700,000 to $13,500,000 Competition Advocate

Attachments:

1. Technical Data Spreadsheet

2. FASI Global LTC J&A

3. Mechanical Engineer Support Reply & Control Arms Report

4. OEM Commerciality Support Data

5. AeroBase Group Commerciality Support Data reviewed and appppppppprppppppppppp ove this ju